Nvidia Earnings Set to Spark Market Volatility

Nvidia's earnings announcement is set to take center stage in markets tonight after the closing bell. The company's Q2 sales are expected to be a major talking point, with a market expectation of $92 billion. Gene Munster at Deepwater Asset Management believes Nvidia will beat its previous quarter's performance by 4% and raise revenue guidance for October by 3%, while analysts at Jefferies are more optimistic, predicting the company will report sales of $95 billion, its largest revenue beat in history.

The shift to new chips from Blackwell to Rubin is expected to impact sales cycles, but Munster points out that SpaceX's chip orders might come in higher than anticipated. With Vestact clients holding a significant amount of Nvidia stock, worth $164 million, the potential for volatility after the announcement is high.